Consumer Buying Behavior

MARK 60550-02

Fall 2008

Professor: Kevin D. Bradford

Class meeting time: Monday and Wednesday: 3:00 to 4:50 in room LO14B
Office Hours: Tuesday: 2:00 to 4:00
Office Location: LO14B Mendoza College of Business
Office Phone: 574-631-5057
Home Phone: 574-340-6931
Email: Kevin.Bradford.11@nd.edu

COURSE MATERIALS:

1. Text Book: One textbook. Available at the Notre Dame Hammes Bookstore.

2. Notes to support Lectures: These are the responsibility of the student. Students
paying
careful attention in the class will provide ample opportunity to acquire the
necessary notes and knowledge to obtain the requisite knowledge to achieve in
the course. The lectures will support the accomplishment of case studies,
assignments, and the material to be learned.

OVERVIEW OF THE COURSE:

This course is an introduction to the fascinating field of consumer behavior. Emphasis

will be given to appreciating its scope, understanding the essentials underlying
consumer decisions, and relating such understanding to issues in marketing. This course
emphasizes theory and empirical research in social sciences. We will see how these
theories and methods provide the foundation for evaluating alternative courses of action
in decisions involving product development, pricing, advertising, market segmentation,
product positioning, as well as other marketing variables.

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The course will be managed with expectations that students conduct themselves
professionally. Students will also be expected to communicate their ideas, challenge
existing thought, and contribute to topics in the class. These expectations are for both
written and oral-discussion based assignments. Students will be challenged continuously
their opinion and ideas regarding consumer behavior topics and will be asked to
succinctly and effectively communicate their points of view in both written and oral
formats.

OBJECTIVES:

The objectives of the course are:

1. To inform students of the major concepts and theories used to explain consumer
behavior and their implications for marketing and public policy decision making.

2. To develop a comprehensive appreciation of marketing’s use of the understanding of

consumers in their business strategies.

3. To develop students’ abilities to use these concepts and theories in developing

strategies and approaches to deal with various marketing management situations in
an applied manner.

4. To assist in the development of student’s communication, creative, and interpretation

skills as it pertains to applied social and cognitive psychological concepts,
demographic concepts, and sociological concepts.

5. To comprehend the power of marketing and appreciate it as a catalyst for social

change and standards of living.

1. To gain an appreciation of the processes marketing uses to affect change.

6. To provide background for a broader consideration set for marketing decisions to

consider not only the maximization of profit for the firm but to consider the effects of
marketing decisions on all of the stakeholders.

COURSE FORMAT/CLASS CONDUCT

Instruction will be provided through a mix of business case analyses, discussions, and
lectures. The class is structured to facilitate students’ active participation in class
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proceedings and case discussions. Thus, daily preparation and completion of class
and/or homework assignments is required. Students will be expected to understand
some key behavioral, qualitative, and quantitative aspects of consumer behavior.
Although the class will engage in somewhat challenging quantitative analyses
periodically, no more than arithmetic and minimal algebra is required.

The lectures and class discussions are predicated on the required readings. The lectures
may cover particularly important aspects of marketing and may be on topics not in the
text. In addition, all assigned reading material is the responsibility of the students.
There will be ample opportunity to ask questions in office hours to clarify or explain
concepts not covered in the lecture or in the case analyses. So that you will receive
maximum benefit from this course, it is expected that all material will be read prior to
class for which it is assigned.

EVALUATION

There are thirteen classes in this semester plus a final examination period. During this
time you will be evaluated in the following manner.

Course component Number % of

grade
Business Case Analyses Four 40
Position Paper: written One 25
Position Paper: oral One 15
Class participation, preparation, and attitude All 20
semester
Total 100%

COURSE COMPONENTS

Case Analyses. Cases analyses deal with topic areas that provoke discussion and
relate to important topics in consumer behavior. Cases studies are relevant and the
discussions prove to be insightful. There will be four case studies assigned. Directions
for these assignments are in the attachment along with the questions for the
assignment. The case studies are group assignments. Case study assignments

Position paper Assignments. The position paper assignment is designed expose

students to fundamental consumer behavior concepts and to challenge students to
articulate how theoretical knowledge can be used to describe current marketing issues
and problems. The assignment is to read the related material for understanding, answer

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the accompanying discussion questions in a report format to be handed in and then to
be presented on the last two days of class. These position papers are to be written in a
complete but concise manner and to be clearly communicated. Students should focus
on both the written and oral communication of the position paper in that they will be
graded separately. The position papers will be evaluated on completeness of answer,
clarity of thought, insightful contribution, pushing the knowledge beyond the required
reading versus reporting the facts, and uniqueness of the contribution. The oral
presentation will be evaluated on the bases of completeness, how informed the
presentation is, clarity, and the ability to answer “the question(s)” that the professor will
pose to you relating to your topic. This is a group assignment. The key here is: While
learning, teach the class.

Class participation, preparation, and attitude. Active participation in the class is

an essential part of the learning experience. Meaningful participation includes careful
preparation for class by reading the text, preparing written assignments or discussion
questions as well as making a contribution to our class discussion.

The class is designed to reward the student that professionally participates. That means
those who attend class, arrive on time, and are prepared to participate in meaningful
dialogue about assigned consumer behavior topics. Absences will be noted and will
affect your grade in accordance with the grading policies of the University of Notre
Dame. Tardiness and absence will directly affect the participation portion of your grade.

Oftentimes, professors can detect whether a student positively affects a class by his or
her attitude toward the class. Students can positively affect their grades by
demonstrating a positive, helpful, professional, and respectful attitude in class. On the
other hand, students that disrupt and present a perceivable negative effect on the class
by his or her behaviors or attitudes can expect their grades to be negatively affected.

GRADING SCALE

Grades will be assigned using the +/- system. The following is the grading scale for this
course:

Letter Score
Grade

A 97-100
A 94-96
A- 90-93
B+ 87-89
B 84-86
B- 80-83
C+ 77-79
C 74-76
C- 70-73
D+ 67-69
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 D 64-66
D- 60-63
F Below 60

SPECIAL ACCOMMODATIONS

If you have any condition, such as a physical or learning disability, which will make it
difficult for you to carry out the work as we have outlined it or which will require
academic accommodations, please notify me during the first meeting of the course and I
will strive to accommodate you.

OTHER COURSE POLICIES

1. It is expected that all assigned materials have been read prior to class. You will be
asked to answer questions, give examples, and explain items covered in the
reading assignments.

2. On occasion, additional material will be assigned and/or distributed in class.

3. Computers are not to be used or cell phones are not to ring in the class.

4. Only those students enrolled in this class are allowed to attend unless
arrangements are made with the instructor.

5. Important course announcements (e.g., changes in the syllabus, etc.) and various
suggestions and hints will be posted to a list serve created from your e-mail
address, so please make sure we have your correct address. Please check your e-
mail regularly.

6. No late work will be accepted. If you know you must miss a class, you may always
turn an assignment in early.

7. All assignments must be typed and placed on hard copies unless otherwise
specified.

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 COURSE DETAIL

Fall 2008

Date Class preparation Topics

M, • Syllabus
10/27 • Definition of consumer behavior
• How the study of consumer behavior is used
• Introduction to the course

W, Marketing and the Job of the Marketing Manager; • Role of the marketing manager
10/29 Chapter 1, page 1; by Winer, Russel S. • The marketing concept
• The importance of being customer focused
• Types of demand
o Types of marketing
• Why Study Consumer Behavior
• How marketing is changing
• Introduction to Segmenting, Targeting, and
Positioning
• Segmentation process
• Importance of segmentation
• How segmentation is used

M, Identifying Market Segments and Targets; Chapter 2, • Value-based segmentation criteria

11/3 page 35; By Kotler and Keller. • Behavioral criteria for segmentation
• Profile-based segmentation
Consumers’ Rule; Chapter 3, page 70; By Solomon, Michael • Requirements for Effective Segmentation
R. • Evaluating Market Segments
• Target Marketing Strategies
• Choosing a Target-Marketing Strategy

W, Customer Intimacy and other Value Disciplines. By • Consumer behavior is a process

11/5 Michael Treacy and Fred Wiersema; (1992) Harvard Business • Consumers use products to help them define
Review article; Product number: 93107. January 01, 1993
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Perception; Chapter 4, page 109; By Solomon, Michael R.
their identities
• The internet and consumer behavior
• Consumer activities can be harmful to
individuals
• How to study consumer behavior

M,11/1 INDUSTRY EXECUTIVE; Richard Yoo; McDonald’s • Three stage process of perception
0 • Products and commercials don’t always affect
CASE ASSIGNMENT Due, page 445: Webvan: Groceries us.
on the Internet; ; Harvard Business review case study; By
Bakshi and Deighton

W,11/1 Attitudes; Chapter 5, page 147; By Solomon, Michael R. • Subliminal advertising

2 • Interpretation of marketing stimuli
Discussion of case assignment: Webvan: Groceries on the • Semiotics and symbols
Internet; ; Harvard Business review case study; By Bakshi and • Why attitudes are so important for consumer
Deighton researchers
• How attitudes are formed
Individual Decision Making; Chapter 6, page 181;
Solomon, Michael R.

M, Attitudes continued; Chapter 5, page 147; By Solomon, • Motivation to maintain consistency among all
11/17 Michael R. components of attitudes.
• Measuring attitudes
Individual Decision Making continued; Chapter 6, page
181; Solomon, Michael R.

CASE ASSIGNMEMT: Coca-Cola’s New Vending

Machine: Pricing to Capture Value or Not?; page 402;
Harvard Business review case study; By King and Naryandas

W, Industry Executive; Tamara Prather; Kraft • Decision making processes

11/19 • Stages in decision making
• Rationality and decision making
• Decision rules
• Heuristics

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 M, Individual Decision Making continued; Chapter 6, page • Special topic: Problem Recognition and
11/24 181; Solomon, Michael R. Information Search

Income and Social Class; Chapter 7, 221; By Solomon,

Michael R.

WRITTEN ASSIGNMENT: Vermont Teddy Bear Company:

Calyx & Corolla; By Alexander Chernev; Harvard Business
review case study; Source: Kellogg School of Management;
August 10, 2005

W, Ethnic, Racial, and Religious Subcultures; Chapter 8, • Purposeful consumption

11/26 page 255; By Solomon, Michael R. • Personal and social conditions effects on
decision making
Age Subcultures; Chapter 9, page 285; By Solomon, • Ethnic, racial and religious subcultures affect
Michael R. consumption
• Three largest racial/ethnic subcultures in the US
• Marketing appeals to ethnic and racial identity

M,12/1 WRITTEN ASSIGNMENT: Li Ning Anything is Possible; • Ethnic, racial and religious subcultures affect
(2007); Harvard Business School Case Study: February 26, consumption
2007 • Three largest racial/ethnic subcultures in the US
• Marketing appeals to ethnic and racial identity
Motivation and Values; Chapter 10, page 315; By Solomon, • Age Cohorts
Michael R. • Teens
• Baby boomers
Learning and Memory; Chapter 11, page 355; By Solomon,
Michael R. • Seniors increasing importance
• Socially Responsible Targeting and Positioning:
Children, Women, and Elderly
• Involvement and consumer decision making
• Cultural values
• Values affect on consumption
• Conditional Learning
• Operant learning
• How memory systems work

W, Presentations of Position papers

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 12/3
M,12/8 Presentations of Position papers